Drinks giant Diageo is to develop 12.6 acres of its iconic St James's Gate site to create a new city quarter complete with 500 homes, offices and shops.

It is now seeking a "world class" development partner to transform the site.

It said that, following "significant investment" at St James's Gate since 2011 and advances in technology, it can now brew more beer with less space. This provides room to embark on the new venture.

A portion of the residential space will be dedicated to social housing, along with public spaces and streets.

According to a feasibility study submitted to Dublin County Council, the site, called 'St James's Gate Quarter', could accommodate 500 homes.

The intention is that this new quarter will be fully integrated into the wider Liberties area.

Oliver Loomes, country director for Diageo Ireland, told the Irish Independent that it will take years before the project is completed.

"It will be many, many years before a sod is turned on this site, but it's very exciting," he said. "Social housing will of course be a part of [this project] because any large development has to have it.

"We have a long-term relationship with the Iveagh Trust and our ambition would be to work with them as our social housing partner.

"At this very early state, maybe a third would be residential, a third commercial and a third leisure."

Earlier this year Diageo secured the go-ahead for its €25m plan to construct a distillery on the 50 acre campus for its new premium blended Irish whiskey Roe & Co.

Meanwhile, Dublin City Council chief executive Owen Keegan welcomed the proposed development saying it will be a "major step in the rejuvenation of the Liberties area".